close_game
close_game

Chip industry groups slam expected rules in private letter to Biden

Reuters |
Jan 15, 2025 05:54 AM IST

USA-SEMICONDUCTORS/REGULATIONS:Chip industry groups slam expected rules in private letter to Biden

By Stephen Nellis

Chip industry groups slam expected rules in private letter to Biden
Chip industry groups slam expected rules in private letter to Biden

Jan 14 - A half-dozen trade groups from the semiconductor and manufacturing industries sent a private letter to U.S. President Joe Biden complaining that new export controls expected this week were rushed through without consulting them.

The Biden administration on Monday released regulations on where computing chips from Nvidia can be placed around the world, setting up a three-tier system in which most nations will need to obtain licenses to build AI data centers with U.S. chips.

In a letter to Biden dated January 13 that was not released publicly, trade groups including the Semiconductor Industry Association, which represents chip firms, and SEMI, which represents firms that make tools to manufacture chips, complained about that rule as well as another rule that could come as early as this week.

"We understand that this additional rule will even more strictly control high bandwidth memory, without consideration of how such changes may impact U.S. companies or cede market share to global competitors," the letter said.

"Again, these pending regulations have been developed without appropriate industry consultation or the opportunity for public comment, despite their long-term impacts and economic and international significance."

The SIA and SEMI did not immediately respond to a request for comment.

High-bandwidth memory, currently manufactured by U.S. and Korean firms, is a critical ingredient to building advanced AI chips, and the rule would restrict its sale to China.

A source familiar with the expected rules said they could also reverse an earlier interpretation of the rules that allowed companies such as Lam Research, which supplies equipment to memory chip makers in China, to bring in hundreds of millions more dollars in revenue than it had previously anticipated.

Lam did not immediately respond to a request for comment.

This article was generated from an automated news agency feed without modifications to text.

Read breaking news, latest updates from United States on topics related to politics, crime, along with national affairs. Stay up to date with news developments on Kamala Harris, Donald Trump,and Joe Biden along with Super Bowl 2025 Live Updates.
See More
Read breaking news, latest updates from United States on topics related to politics, crime, along with national affairs. Stay up to date with news developments on Kamala Harris, Donald Trump,and Joe Biden along with Super Bowl 2025 Live Updates.
SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, February 14, 2025
Start 14 Days Free Trial Subscribe Now
Follow Us On